dagen: a high school dropout starts a business in his mom's apartment. by his mid 20s, he is worth about a quarter of a billion dollars. connell: they are back at it. china's military targeting america's cyber infrastructure. dagen: incredible pictures out of the midwest. those stories and a whole heck of a lot more coming up on markets now. ♪ connell: we liked this story. the kid in his mid- 20s. look at him now. dagen: manhattan was not good enough for him.

connell: a real hipster. we will talk about that later, by the way. let's go to nicole petallides. nicole: good morning. let's talk about what we are seeing here with the major market action. record after record. you do see the diversions. the dow is slightly down. all three of our major averages are less than one tenth of 1% away from the unchanged line. this wait and see type of mode. we will get to that, obviously, this is a top story in business where you have yahoo! buying tumblr. it is great to get young generations to yahoo!.

good news there for them. the stock is up one quarter of 1%. we continue to follow other stories such as boeing and campbell's soup. back to you. connell: thank you, nicole. dagen: the white house knew about the irs targeting campaign as early as april. connell: all of this comes as lawmakers on both sides of the aisle are working to find out who is responsible. there are two more hearings this week on capitol hill. that is where peter barnes is. peter: who knew what and when did they know it? they will try to dig into those questions this week. as you recall, the president said that he did not know

anything about it until he read reports on this a week ago friday. one of the president's advisers made the round yesterday on the sunday talk shows to make the offensive. take a listen. >> somehow that the president about this to happen is offensive. there is no evidence. >> it is clear that the facts are out there. the irs did things that no one in their right mind should defend. peter: the republicans are being very careful about making political hay out of all of this. they say they will be thorough and methodical in pursuing all of the facts. dagen: thank you very much. let's bring in former governor of minnesota. he is joining us from washington, d.c.

finding out that the white house counsel was told of this irs report and the audit some weeks ago, shown it the president have been told even then, governor? >> obviously, their motivations are chilling. the question of who knew what when and what did they do about it is the defining question. you would think that they would want their supervisor or the person that they report to to know about it as well. dagen: at the counter argument to that has been from a number of people that it may create the appearance that there was interference with this independent investigation and that may be one of the reasons the president was not informed

several weeks ago. do you expect that the american people will find out really anything from these hearings? is it a waste of our >> it is very difficult for an entity to investigate itself. they should make sure that we get good factual information. on the earlier point that you made about notice up the chain, there is a difference about notice and change. nonetheless, you cannot make good judgment or be a good manager unless you have good information. dagen: do you think that the lack of management and the fact that this was going on in the most powerful division of our

government, the fact that this was going on speaks to the problem of large government, government that continues to grow in size? >> obviously, something that is very large can become complex and more challenging to manage. it does not mean that it cannot be managed. we need to get the fax framed up here. you may have people acting poorly. now, the question is who knew what and what did they do about it. that needs to be reviewed and i am sure that it will be. dagen: i think that those are very wise words, governor. thank you for being here. it was great to speak with you, as always. be well. connell: young americans are in worse financial rough than we may think.

7% are lowered and that of their parents 30 years ago. we bring ryan jacobson and from wells fargo. what is the affect of that? >> there is a number of of facts here. it actually compromises your ability to take on more debt for purchasing inks like automobiles or housing. some studies have shown that within that under age 40 group, those that have the higher student loan debt are less likely to own a new car and own their own home. connell: are you seriously worried about something like

that or is it something that we have to wait and see for a while? >> it is something that i am concerned about, but not worried about. other people are also concerned about it. that is why you really have to look at the businesses you are investing in and how will they adapt to this. we have seen a pickup in some of the multi family residential construction. going forward, may be property or home ownership rates will be lower in the future than what they are now. connell: also from younger people's perspective, if this phenomenon has been in place for quite some time, won't their behaviors start to change as well?

state school may be a better investment. will that be a big trend here? >> i think that it is. students really have to think about whether or not buying time in college will be worth the cost. those are all things that kids are going to have to wrestle with going forward that previous generations did not really have to think too much about. connell: some economic data good. how do you feel this morning? >> i actually feel pretty good. maybe it is because it is sunny

out and kind of nice. it is a mixed bag. it is still pointing towards continued growth. connell: good to see you, ryan. thank you for coming on. dagen: i am having a really bad hair day. it is twice the size than it normally is and my back hurts. connell: i say that you look pretty good. dagen: let's go to china. the chinese military back at it. connell: they took a break, but now here they go again. the latest report that is just in from the congressional budget office. we will look at those numbers. oil is trading just under $97. ♪

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the first technology mom and dad, i have great news. is now providing answers families need. siemens. answers. ♪ dagen: not that. not bad at all. stocks now. see tony taking up the whole solar site dirt. gaining 26% last week.

it is of 323%. here are the shares all time highs. they did get leasing and money from goldman sachs. that helped them along here. $500 million solar power projects. they are to have estimated 100 megawatts. this news has continued to push -@the stock higher and higher. pushing it to an all-time high. taking other names in the group of along with it. connell: thank you, nicole. dagen: time to make some money with charles payne. connell: you recommended this stop before.

charles: i got whacked real bad and it. i wanted to come back and talk about it. it has been an unmitigated disaster since then. connell: you are not right every single time. charles: i was right on solar city. i watch this entire earnings season. it is a strong quarter for us. they were disappointed. what the heck, man? let's pump this bad boy up. what i did like is he talked about the long-term safeway turns. he is absolutely right. bring your own device at work. i still like the gross margins which are strong for both products and services.

we got stomped out of it big-time. i think we will be okay. obviously, extremely volatile. i think this ceo trying to be too honest paid a heavy price. dagen: you want them to tell it like it is. charles: we will all have to do a little bit of salesmanship in this world. connell: my innocence is broken this morning. charles: everyone is selling. the band bernanke, he is selling. i do not know anyone out there that is not selling. dagen: i am just thrown off by my innocence is broken.

it was more than just the phrase that you used. [ laughter ] connell: thank you, sir. appreciate it. we have been talking about the hack attacks from the chinese. they are back at it again. dagen: we should all feel sorry for the people in minnesota. gas prices there are the highest in the lower 48. what is going on could be good news for those midwestern states. let's take a look around the world at currencies and how they are doing against the dollar. ♪ i want to make things more secure.

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♪ >> 22 minutes past the hour. two members of the fbi's elite hostage crew were killed on friday. they were members of the top level counterterrorism unit. this team was formed 20 years

ago. south korea is condemning the actions and analyzing whether the projectiles were a new type of longer-range artillery. north korea says it is bolstering its return against an attack. connecticut is warning it could take a week before commuter train service is restored. repair crews are rebuilding. those are your headlines. dagen: thank you, lauren. connell: multiple reports that the attacks have resumed. dagen: jolene kemp has insight as to why china has restarted

these attacks. >> after a couple of months of silence, this one building in china has apparently re- upped its action again. they have attacked companies that were attacked before. we are seeing the flow of the chinese as. nagy happening again. connell: they are doing it from the same building. originating from the same place that original report said it was. >> that is right. they have a new president. instead what is happening with her is it has been made very clear. they are not actually able to control this. from my reporting, often times

the government can say one thing and conduct something else on the site to accomplish their goals which, at this point, seems to be rather disturbing. dagen: what will make them really cracked down? >> i think that they can absolutely really cracked down. they can control it. they control how they are citizens use their versions very closely. i think it will only come with a lot of calculations from the u.s. it is only the u.s. that has that ability to influence them in that way. president obama is going to china soon and may expect this to be the centerpiece. connell: you are saying they've literally may not know what is going on at the top levels because they set up the goals for the future. >> that is certainly one way of putting it.

we do not even know if their gdp numbers that they are reporting are actually real. they want to be credible on the international market and get there are also these other alternative motives. connell: that is interesting that it came from the same place again. dagen: thank you. the president's math not really adding up with that of the congressional budget office. connell: not at all. the price of gasoline on the rise all around the country. we will have a report on that. stay with us here as we continue on markets now. here are some winners on the s&p 500. ♪ ♪

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to wireless is mitless.s... ♪ dagen: president obama's budget promise. spending cuts of $1.82 billion. that number is exaggerated by about 700 billion smackers. gasoline is going up nationwide. no state in the lower 48 is feeling pain like minnesota. second person is reported dead after tornadoes tear through oklahoma. connell: at the bottom of the hour, let's go back to nicole petallides. nicole: this is a big deal here. it is up 2.5%. $128.68 a share.

it was a takeover speculation. this is news that they are buying a specialty company. that brings them a portfolio of women drugs in particular. this is the second major acquisition. now, we continue to move forward and we will see whether or not it ends up being a takeover target. it was a five oh yen dollar deal stocks. connell: the president's budget promised to cut $1.8 billion in spending over a decade. we have former director of the virginia republican party with

us. we also have the former press secretary to al gore. >> i think it is important to keep it in perspective. the big reports last week was the idea that we have actually dropped our deficit right $200 billion this year alone which is much more quickly than anyone ever imagined. they are pretty manageable over the next ten years. dagen: that is a pretty fair point. overpromising is dangerous, i think. >> hugely dangerous. this is in the face of the administration continuing to cover up on benghazi. also, this massive grab at

private news organization e-mail. i don't think anyone is surprised that the president vastly exaggerated. this is massive exaggeration. this budget actually cut spending by a mere 172 million. that is incredible. >> there has been new spending in the president's budget. the fact is it is more than offset by the spending cuts. connell: it is not exactly what you promised us and now we want to spend more on certain things. >> i think this is a classic case of trying to turn bad news

into good news. our deficit is dropping. it is dropping to a very manageable level. again, that is a really manageable good level. connell: you are ready to argue that point. >> by 2017, the deficits will start going up again. they often say that there is no balance in this budget. the president has said again and again that spending cuts will equal out to tax hikes. the president that he will only raise taxes by 580 billion. the cbo says this budget raises them by $1.1 trillion.

connell: we should pat ourselves on the back to even have the focus to have this conversation. we cannot get beyond, not only the scandal of the day, but the scandals of the day. i know we did one segment on it today, but they have been few and far between. >> there is no question. this has been a terrible week for the white house. we have really good economic news in a lot of ways. we are actually ssending less on obamacare than we originally

thought. there is lots of good news and it. >> i do not think $59 billion is a big success story to talk about. when the president goes out there and tells yet another, i hate to say it, but this is a lie. what he said about this budget is not true. it is not even close to true. that is a big deal in the picture of all of these other defeats. >> the fact is that republicans has used the dead as an excuse.

now we know that it is based on a lie. connell: thanks to both of you. we will talk to you soon. >> it is good to be here. gas prices are sky high in states like minnesota. why? tom kloza will tell you. connell: more on these incredible pictures that have come in from the midwest. details coming up on that as we continue on markets now. first a look at more markets as we head to break. ♪

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♪ >> hello, everyone. i am diane mmcedo with your fox business brief. boeing is getting its 787 back in the air.

the faa cleared the planes last month after boeing fix the issues with their battles. ge capital is shelling out money to general electric. report is also promising dividends. they will pay a three dollar dividend share. shareholders are expected to vote on that deal today. that is the latest from the fox business network. giving you the power to prosper. ♪ where companies like geico are investing in technology & finance. welcome to the state where cutting taxes for business... is our business. welcome to the new buffalo. welcome to the new buffalo. welcome to the new buffalo. new york state is throwing out the old rule book

toive your business a new edge, the edge you can only get in new york state. to grow our start your business, visit thenewny.com ♪ dagen: gasoline prices in this country have shot up. let talk about minnesota..3 that state currently has the highest gas prices in the lower

48. $4.28 a gallon. north dakota not far behind minnesota. what gives? tom kloza knows. he is joining us on the phone right now. what is going on? >> it has nothing to do with crude and has everything to do with refining. we had a couple refineries down for a portion of may. then we have a lot of refineries in kansas and oklahoma that tarnish is the supply. it is a little bit of a breadbasket. the price of crude is 95 or maybe $100 a barrel at worst. for the moment, there is a little bit of a tight squeeze. i expected to get a lot better for that part of the country in 30 days.

this will mean that these refineries can now process the crude coming from canada; right? >> it is almost like a peanut butter consistency. it is very heavy and it is very sour. to run it, you have to reconfigure your units. it is a bit like taking the two-lane highway and doing work to make it into a four-lane highway. dagen: nationwide -- >> i do not think that we will move a lot higher. we are probably past peak on the west coast. we should have plenty of supply.

we will see prices higher than a year ago in the next couple weeks. dagen: what about hurricane season? how concerned are you? >> pretty concerned. we build a lot of new refining capacity. it is all sort of in hurricane alley. i hope it is a partly cloudy summer down there. dagen: how does it bode for the gasoline price future for us? near run or long-run? >> near run we will have lots of gasoline. short run, we have some high prices in the midwest. they are willing to stop drying a little bit. i think demand has been a big story this year.

ppople are not driving as much. i think something secular is happening. dagen: pickup trucks have been selling like hot cakes. now, you see them in the top five of ford, chevy and dodge. is that setting us up for an uptick in demand. >> i think that they are much more fuel efficient. i think, ultimately, the mileage is going to improve probably just a mile per gallon a year. dagen: nothing says america like a pickup truck and a big old wet dog sit in in the front seat with you. a big old hound dog or bloodhound. tom, thank you. tom kloza.

connell: quarter till the hour. we are taking a look at yahoo!. pretty big news. shelling out a billion dollars in cash for tumblr. what do you think of this deal? >> >> i just signed up for tumbler this morning. i think it is actually a pretty smart move i yahoo!. they have been looking for a way to break into the mobile space. i think it is a pretty safe bet by marissa mayer. she was also probably involved with the deal to buy youtube. they have that kind of success. connell: youtube has been around for eight years.

it seems like it has been around for 100 years. we will see how tumbler goes. thank you, keith. dagen: i think he'd just made it uncool by signing up for it this morning. [ laughter ] 26-year-old david karp started tumblr six years ago. he started it and his mother's new york city apartment. he is now worth somewhere north of $200 billion with this deal. he dropped out of high school here in new york city. the big bat for marissa mayer. she does not even know it. posting on her tumbler account, i am delighted to announce that we've reached an agreement to acquire tumblr. we promise not to screw up. tumblr is incredibly special and has a great name going.

connell: you look at like, facebook, for example. i asked how the facebook phone was selling. when facebook was cool a couple years ago, they would have sold these phones. dagen: to change the subject slightly, jolene said ad spam and babies. don't you hate facebook. [ laughter ] connell: that is what it has come to. dagen: i find twitter very

useful. connell: i have never used tumbler in my life. moving on to these terrible tornadoes in the middle of the country. oklahoma really getting slammed. the latest is just ahead on that. dagen: we have the latest forecast for you coming up. ♪ it's monday.

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connell: the story of john mcafee keeps getting stranger and stranger. his i -- his island home in belize has burned down. he knows a thing or two about being suspicious. he made news back in november as a murder suspect. dagen: he was like, remember, in miami held in court on ocean drive. it was so bizarre. connell: it was a little weird. dagen: after four months on the

ground, boeing 7873 minerd is back in the skies. it took off at 11:00 a.m. this morning carrying over 250 passengers. the nation's midsection on high alert bracing for another round of violent weather. connell: two people are now confirmed dead. several tornadoes slamming into parts of the midwest yesterday. oklahoma had just size hail and tornadoes. you can see the destruction that was left behind. a very moist atmosphere is

creating an unstable environment and laying the groundwork for many of these storms. these four people in that area. two peopll have been confirmed dead. dagen: that he'll really was the size of a softball. connell: it was horrible. dagen: a lot of news coming up this week. especially, for jamie dimon. chairman and ceo, will he be able to keep those titles. connell: that is coming up on "markets now." scott kessler has some thoughts. he will be sharing them. cheryl and dennis will continue markets now next.

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dennis: stocks up again. cheryl: yahoo buying tumblr in an cash in on the social networking craze but we have a guest ahead who says this isn't going to work. plus another guest knew how to cash in on this one. dennis: and dennis kucinich is here. we're calling it dennis versus dennis. first topic, real mining of the i.r.s., tea party scandal. cheryl: another big guest this hour. dick bove is here to weigh in whether jam dimon should keep the chairman and c.e.o. roles although -- at j.p. morgan dennis: and nicole? >> another record setting day on wall street. early in the morning we saw futures slightly lower and then

saw the major averages less than one tenth of 1% away from the unchange line. however, we've picked up a little momentum here and now we're seeing the nasdaq up a quarter percent just as the s&p 500, the dow jones industrials up, all of the major indices hitting a record of some sort. the dow and s&p 500 are breaking through and making record all-time intra day highs and the nasdaq composite surpassed the earlier record but still at the levels we have not seen since the year 2000. on the dow jones industrials right now, we're seeing names on the move to the upside such as american express, caterpillar, exxon, chevron, dupont, j.p.

cheryl: safe to say, the old addage might not be playing out on this may. more news on this monday. yahoo diving head first into the social media business. the c.e.o. announcing a $1.1 billion acquisition of item ber. that's a social media network. can you profit off of this? where is the next big acquisition? do the markets care about deals like this anymore? i have the chief investment strategist and we were talking about the numbers and how they value tumblr but if you look at the revenues, the valuation isn't quite there in your opinion. >> it doesn't really make sense. these companies have no profits at this time so the best metric is the amount of revenues. last year they had $13 million of revenues first quarter of this year, $13 million. give them the benefit of the doubt. four times 13, about $50 million. you're paying 20 times revenues where even facebook is selling at 11 times revenues, half the

price so they really got their challenges to make this profitable given how much they're paying for it. cheryl: marissa meyer said we're going to leave the c.e.o. in place, we're going to let him run the company and nothing will change. then why do this if you can't incorporate a tumblr into a yahoo? why would you spend $1.1 billion? >> the eyewalls. everybody wants the eye balls and the user. this is yahoo's attempt to chase where the market is going. but as much as i admire what she's doing at yahoo and she's started to turn the company around, the real challenge is how do you keep it cool and yet at the same time insert the advertisements, insert the commercials to monetize it? then the users say, i don't want to put up with that. i'll go elsewhere. cheryl: she could call mark zuckerberg and ask about that.

it could be months, maybe years away. same thing with twitter. you were looking at the possibility of that and you say the valuations aren't there for this type of i.p.o. >> the latest valuation they might put on twitter is $10 billion and they're hoping to get $1 billion in revenues by 2014. you still have a widely overvalued company and like facebook, there's been a sharp runnup in the secondary market as some people have cashed out. blackstone bought in so i'm afraid that a lot of the low hanging valuation fruit for an i.p.o. buyer will already be gone by the time it goes public. cheryl: watch out. but you're going old school. you like intel and that'' interesting. intel has been around for decades, new management coming into play and you're saying intel is the way to go in your opinion. >> people are looking for yield here. there's no yield in the bond markets. they're looking for stocks that yield well. here you've got intel, 3.7% dividend. only pay 2g.9 on the 10-year bonds so they could issue more

ponds, buy back the stock and that would be a smart financial move o. top of that, they've got the new mr. c.e.o., 31-year veteran, just took the reins on thursday and finally the big knock on intel was she didn't have a strategy to get their processors into mobile but silver mont, very low power consumption chip, even the skeptics are admiring of it so i'm putting my money behind intel at the current level. cheryl: one thing i thought this was great that you said in your notes today. you said do you know what? look at the pump prices because they're staying nice and low. that's a tax break for americans. you are betting on the economy. you are betting on the consumer. >> absolutely. that's one thing the strategists got wrong. they thought the gas prices would be soaring this year. in fact, they've come down and of course, the most important price in the u.s. economy is not the dow jones industrial average. it's what the average consumer sees at the top of the pump. it's like a tax break and helping off set that hike in the

payroll tax. cheryl: i say look at the s&p 500 as well. david, thank you so much for weighing in. big news on yahoo. appreciate you being here. >> my pleasure. dennis: we'll break down the investment and now a segment we're calling dennis versus dennis. joining me now, dennis neil, the we have massive amounts of people who are out of work and the oxygen that's being sucked out by some of these scandals may limit the white house but still has to be held accountable for not creating the jobs. cheryl: i could have sworn it was other things that were hurting job growth such as tax increases on 2/3 of all the profits that go to small

businesses and anti-business theme and demonizing world creation but now you worry that scandals could distract the white house from creating jobs? >> well, i'm not for tax increases, first of all, but what i was pointing out yesterday is that you have 7.9 million americans who are involuntary working part time. they're looking for full time work. they can't get it. you have more than eight million americans unemployed and that is probably greater because people stop looking for work and beyond that, middle class is working but wages are stagnant. they're maxed out on borrowing and, you know, consumer spending equals income plus increase of debt so you have the economy actually stagnant when it comes to the middle class. you can't reflect the house of the middle class by saying the market is moving because there's no connection between a booming market and america's middle class economic health. dennis: the chief staffer said i don't want you spending more than 10% of your time on the

scandals. is that a realistic assessment? will they be able to do that or will this distract from policy making and overhauls we need to do? >> they may have to spend 20% of their time on these scandals. i think that we have to ask that if the private sector isn't providing enough jobs and obviously they're not because so many people are either working part time or can't get full time work, then the public sector has a moral responsibility to do it and president obama has shied away from any grand intervention in the economy in that regard. i don't think wall street has anything to complain about with respect to the president but main street has plenty to complain about. dennis: we spent over $800 billion on a government stim pack. it's not their job to take up the slack for the private sector. how about freeing the private sector? how about overhauling the tax code? how about slashing the tax of 35% on overseas cash so the companies bring home $800 billion and a private stimulus

plan? what do you think about the i.r.s. scandal, though, in terms of the target that go went on? do you think that it may be a tip of the iceberg and that other obama administration agencies also targeted businesses or business owners that were enemies of the administration because of the groups they donated to? >> i don't know about that but i'll tell you this. every american understanding the role of the i.r.s. and every american understanding that if the i.r.s. is involved in targeting individuals who are groups of people, that's not right. and so that's where -- that's the bottom line in all of this. it's not an appropriate use of the power of government nor is it an appropriate use of the power of government for the national security state that's being built where they're tracking reporters and they're targeting people with the i.r.s. and, you know, these are things that have to be challenged, whether you're democrat or republican. dennis: the "wall street journal" on friday had an

interesting column that said while congress is looking to see, did the white house know about this i.r.s. thing, did the white house make a phone call to the i.r.s. saying we want you to go after them, they didn't have to. by demonizing the groups, by president obama publicly brandishing them, a threat to democracy, he was all but telling all of his agencies of government to go after these guys. what do you say to that argument? >> i read kimberly's column and i think that she's right. the president sets a tone. and the tone is one which bureaucrats all the way down the line look at. now, will an investigation prove that there was a direct connection? probably not but there is a tone being set and again, the americans have a right to expect their government is not going to be using power. government can be a force for good. we have to say that. and government should be a force for good. but if government gets so much power, whether it's a national security state or going after reporters or tag -- targeting groups to the i.r.s., that's a

problem and needs to be exposed. going back to the economy, we have a lft people working part time, want full time jobs. where are the jobs programs? this is what i'm concerned about. i spoke about it yesterday and i'm saying here again today, you know, it's always good that the stock market is moving but middle class america doesn't necessarily benefit from that. we need to see something that's going to move wages up and give people a chance to hold on to their middle class status. dennis: over half of america has money in the stock market and retirement accounts but still i'm going with you. i hope we do dennis versus dennis again. >> thank you. cheryl: let's call this one diamond in the rough. banking analyst dick bove will be coming on, on whether or not jamie dimon should keep both roles at j.p. morgan chase. tomorrow is the big meeting and we'll get his thoughts ahead of that. dennis: what is the problem? c.e.o. steve cohen is subpoenaed. we have that ahead. and first we do every day at

this time, a look at oil. we'll tell you what it's doing to gas prices live from the c.m.e. coming up. [ male au're having triplets. [ babies c crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car eds a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. om td ameritrade.

cheryl: we want to show you live pictures coming out of houston. there it goes. the united 787 dream liner, now taking off from houston. this plane is on its way to chicago after four months of being grounded. 787 once again, now back in the air officially as you see it live on your screen. remember, united is the only u.s. carrier that operates the 787 in the first quarter, they were hurt $11 million in losses based on loss in cancellations and delays of the 787 but here we go. this plane is off and running, out of houston, texas on its way to chicago, illinois. take a big breath, everybody. all right. take a look at how shares of boeing and all the dow 30 are

doing right now. boeing is in the red but only by five cents. the stock overall has recovered since the incident. american express right now leading the dow, so is alcoa and cisco and merck are the red stocks. dow up by 33 points right now. let's go to nicole at the floor of the new york stock exchange. take a look at the leader. american express is our stock today. >> it really is. when you take a look here at american express, it's not only a 52-week high or multi-year high but all-time high for this dow component. you can see that american express is moving to the upside. year to date it's up about 29 1/2%. today traded as high as $74.54 a share so that's certainly a stellar performance today leading the way on the dow jones industrials as we noted and it's been in the street ratings, a buy rating. they continue to feel that american express has outside

potential on a day where you're seeing the major averages with up arrows and breaking records so there's a look at a one-year chart. it's had a great year to date but this is a one-year chart and you can see up arrows the whole way up 1.6% at the moment. back to you. dennis: time to make money with charles payne and he's following on a previous indication. >> shaneer. i called the office and i think i told you guys this story, got the receptionist on the phone. she said everybody is partying. i said what? you are drinking champagne? she said everybody is partying. i loved it. today credit suisse upped their target also. if you look at this and didn't know what they did, you would think they missed the street the last four quarters, earnings consensus are going down, not

up. insiders have sold 1.9 million shares turning 14 times booked but here is the flip side of that. wall street has been putting -- you know, they abandoned the stock a long time ago. as they come back, and i think they will, you'll see the stock moving higher. why? liquid natural gas, measured by millions of british thermal units, about less than four bucks in louisiana. $3.79 in lake charles. in rio $15. india, $14.40. dennis: but they don't sell in those markets, can they? >> but they can export anywhere. this is why we talk about it not only creating amazing jobs and a tax base but we'll be exporting this liquid natural gas around the world. look at the margins. there are some things there that will -- you know, they won't make all of that obviously but when you get something at four and it's selling in another country is the 15, that's a lot of money in between.

dennis: 14 times revenue? 14 times profit? >> it's running at 14 times book right now which is extraordinarily high for any stock. dennis: thank you very much, charles. cheryl: well, steve cohen subpoenaed in the insider trading mechanism. charlie is going to be coming up with his thoughts in the newest information. dennis: and the commuter nightmare. it could take a week before metro north train service in new york city is restored. details in the fox news minute ahead. first here's how the world currencies are fairing against -pthe u.s. dollar. that means the dollar is way down.

>> i'm lauren grown with your fox news minute. north korea fired two more short range missiles into waters off the east coast making it six launches in three days. south korea is condemning the actions and analyzing whether the projectiles were a newer type of longer range artillery. connecticut's governor is warning it could take a week before commuter train service to new york city is restored.

72 people were injured in friday's derailment and collision near bridgeport. repair crews are rebuilding 2,000 feet of track, overhead wires and signals. and in florida, no one has come forward yet to claim the jackpot. winning ticket was sold at a supermarket in the small town of zephyrhills near tampa. the winner has 60 days to claim it. i'm lauren green and that's your fox news minute. cheryl: steve cohen subpoenaed to testify before a grand jury in the government's insider trading investigation into his hedge fund. the firm is an upheaval over all of this. charlie, i thought they said they were done cooperating with the government and now we hear about the subpoena. what do you make of it? >> well, that's why they're done cooperating with the government.

i mean, let's just look at it a little bit. they came out with a statement on friday that said they're no longer going to unconditionally cooperate with the government. every reporter in the world went out there and said why? since they were fully cooperating before that time and they'll come out and determine what we actually reported on friday, we were quoting the professor at columbia university that you usually put out a statement like that when you received a grand jury subpoena and that cohen probably received a subpoena. we have now confirmed at fox business network that he received the subpoena. it points out there's a lot of activity around the time that this went out. we do know that s.a.c. capital went to the u.s. attorney's office with this attorney and basically said, listen. we would like it put this behind us. they did that right after the time of his artwork. i'm not saying that they're

connected. but i talked to people who say the government was pretty perturbed at the showy display of sending right after he cut the deal with the s.e.c., went out and bought some artwork and then went out and bought a house and then tried to get a deal with the feds on the criminal side, basically to put this behind him and they rejected it. that would have been a non prosecution agreement. s.a.c. capital, the way i understand would cease to exist in the current form. it would go out and raise another fund. steve cohen wouldn't be prosecuted so he could come out and still invest but yes, s.a.c. capital would be done and there would be a huge black mark on that fund so he would have to essentially start another. the government essentially has rejected that deal and that's where we are today. now, where do we go forward? steve cohen has been asked to testify. he's been subpoenaed to testify. cheryl: grand jury asked for it with other people.

>> let me finish what i'm saying. what i'm saying is that tells me that he will not necessarily be charged. they could be going in some sort of perjure trap, do what they did to martha stewart, call her in, see what stories she gave. and then nail her on one of her misstatements. they did that with martha stewart in 2004 and brought charges and she ultimately spent five months in jail. i could see them trying to do that with cohen. if they did have the case right now against him, i would think they would be more than a grand jury subpoena. they would be charging. former analyst was involved, that basically was involved in the decisions. if he was flipping now on cohen, he would be charged right now. steve cohen would be charged or michael stienberg. still with the firm. mark is down there since 2009

but again, they don't quite have the case yet. my guess, if steve cohen doesn't go in there and talk, then he'll take the fifth. then it's an issue of what they do with this case. statute of limitations on a lot of these suspicious trades ends this summer. why is that? a lot of them occurred in 2008. we're talking about five years since then. they have to make a decision. do they go with the evidence they have or do they just end it or do they do something different? i'm talking to legal experts today. don't discount the notion of a the firm that the feds believe -- i'm written a whole book about this and talked to government officials investigating this case, they believe this is a firm that profited from illegality. you just figure out a way to close the firm through a charge, indict the firm. that's a possibility here. there's a lot more shoes to

drop. i think they're going to drop fairly shortly. like i think months we're talking. i don't think this is going to go on for years. this is the end game. the fed has been looking, as i wrote in my book that comes out in early july, the feds have been looking at steve cohen since apt least 2007. they've tapped his phone. we were the first to report that. they got a court order to tap his phone. that means they found probable cause. the agent that was involved in that, they found nothing on that wiretap but they went out to a judge and found probable cause. that wiretap occurred sometime around 2008-2009. no one knows the exact date but it did occur. they didn't find anything but when they tapped the phone, that means they have probable cause. they're either going to do it or not going to do it and i think we're going to know within the next couple of months just in time for my book to come out. cheryl: i'm not sure what i'm more excited about, your book coming out or the grand jury coming out. you'll be in on both of it.

thank you very much. great new details on the story. dennis: highest nail gets pounded down. oklahoma is bracing for another severe storm after several tornados touched down in the state. we're going to take you there live for an update. cheryl: also the future jamie dimon. is he going to be stripped of his chairmanship? dick bove has very interesting thoughts about what happens to jamie dimon. all stations come overo mission a for a final go.

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[announcer] you are how you sleep. tempur-pedic. >> i'm live on the floor of the new york stock exchange. every 15 minutes here on the fox business network, we have you covered. stocks now. take a look at the averages. all up arrows across the board and also mentioning some movers here worth noting. apple back with an up arrow again for many shareholders. it's moving above $440, up about

2%. campbell's soup has quarterly numbers, did well and looking to the outlook. it het a new high and also worth watching names like carxaks and j.c. penney. they were upgraded to a buy rating from a hold. new price targeted of $27. that's up from $16.50. of course, j.c. penney made plenty of headlines. year to date they're still under pressure, down 6% but has improved the last year or so. and bank of america, one of many dow components hitting new highs, all-time highs, multi-year highs, bank of america, j.p. morgan, 3-m, microsoft and united technologies are some of the dow components hitting new records. cheryl: thank you very much. we'll see you at the top of the hour. well, shares of j.p. morgan, the stock is hitting a six-year high this morning. jamie dimon stands to lose his

chairmanship, results of a highly anticipated shareholder vote will be announced tomorrow at the annual meeting. joining me with his opinion on what we can expect tomorrow, dick bove and dick, before we start, you know, this is a stock up over 50% the last year. you would think that alone would solidify jamie dimon in keeping both jobs. should he in your opinion? >> i definitely think he should keep both jobs. you want a c.e.o. who is going to create wealth for you as a shareholder and there's no question about the fact that he did that when he was at bank one and did he it again when he was at j.p. morgan. when he took over j.p. morgan, he went through this financial crisis and the stock is actually up, something like 20% from when he took over to what it is today when bank stocks in general are down about 20%. he's done the job for the shareholder and therefore, you would think the shareholder would be loyal to him and keep

him in position. don: there might be another reason the shareholders are loyal to jamie dimon. if you look at the seven out of the top 10 shareholders voting tomorrow, and this will truly swing the vote tomorrow, many of these gentlemen, they're all men, are both chairman and c.e.o. of their own firms and here's a list. black hawk, van guard, wellington, those are the top five. seven out of 10. doesn't this in itself mean he's going to keep both jobs? >> it is a pretty strong indicator that he will. i think personally that it might be a 55-45 vote with him keeping the job but i don't think that, you know, after he -- assuming that i'm right and he wins that after he wins that everything goes back to normal. i think that j.p. morgan then comes out with a series of statements the next few months in which they strengthened the position of the strong outside director that they offered new,

if you will, changes in the way the board of directors is going to operate with management, that they talk about how communications will be different and i think they also, you know, perhaps even put out a mission statement, you know, reinforcing the fact that the customer comes first. so i think that there will be definite results of this vote even if he wins. things are not going to go back to the way they were before. cheryl: he's been so criticized even in the first quarter. net income was up more than 30%. wait. what's going on in the accounting, in the mortgage banking division? he just can't seem to get away from critics. why is he such a target? >> well, to say it simplistically, he has a big mouth. he's basically criticized the policies of the united states government related to the dark frank act and he's criticized vigorously people in the press, you know, for not understanding

his company properly so i think that he's been that way with the media and the government that they don't like him and they want him out but the fact of the matter is, if you look at j.p. morgan, you know, there are obl three companies in the united states that make more money than j.p. morgan. two oil companies and apple. there's no bank in the world that makes more money than j.p. morgan except for the chinese. this company superbly managed, done a good job for its employees, its customers and shareholders. he deserves to be there, big mouth or not. cheryl: we were showing a 10-year chart of j.p. morgan chase and the performance there with the volatility. but if you compare the 10-year performance of j.p. morgan versus a bank of america, wells fag o -- fargo, citi, who is th winner here?

>> i think it's a horse race. both are extremely well managed, both have approximately defined strategies and know how to get results but it would be hard to give an edge to one of the two companies. both citigroup and bank of america have been disasters in terms of the way they've been managed up until a couple of years ago. but, you know, both of the j.p. morgan and wells fargo are fabulous stocks. cheryl: and a lot of that is based on the mortgage business. dick bove, thank you very much. we shall see tomorrow what happens. appreciate it, dick. >> thank you, cheryl. dennis: and that's a big vote tomorrow and fox biz will be live in tampa at the shareholder meeting. we'll have the results of the vote as they come down. this is just aimed at bad dog, bad dog. cheryl: just in time for summer, we're seeing, which is really late in the season, we're seeing a gas price spike.

we'll see where prices are going based on how the contracts are doing right now. dennis: and the yahoo deal to get in on the social immediate work craze. is it too little, too late and too expensive? that's next. if you've got it, you know how hard it can be to breathe and man, you know how that feels. copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment thatelps open my obstructe airws for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for suddesymptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discs all medicines you take, even eye drops. stop taking spira and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes

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after four months of being groubdzed, dream line ser back in the air. united dream liner taking off from houston earlier this hour, carrying more than 250 passengers, including the 1903, the wright brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ won ] can you hear me?

and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and appuse ] ♪ hi. [ baby fussing ] ♪ dennis: the yahoo tumblr deal,

too late for yahoo to crash in on the social media craze? let's ask scott of s & p capital. you put out a higher price target for yahoo. you seem it's going to be $30 and yet you kept it as a hold. how come you're not going to recommend the stock? >> well, first of all, i would say that, dennis, we raised the target price but it doesn't have much to do with the announced acquisition of tumblr. this is really about just kind of looking at our valuation models and indicating that, you know, we think that yahoo the next 12 months, 12-month target price of $30 is more appropriate than $25. dennis: but you're not recommending it as a buy. that was more the point of my question, scott. >> we're not recommending it. yeah. i thought that was clear. we have a hold recommendation on yahoo and we're sticking with that. dennis: this deal with tumblr, $1.1 billion for a firm that has

$13 million in revenue all of last year and $13 million the first quarter. that's kind of an out of whack price. what do you think the key obstacles yahoo has to overcome to make the deal pay? >> obviously one of the things that, you know, we try to get more information about during the conference call and were unsuccessful is what you're speaking to which is some of the financial metrics that enabled yahoo to get comfortable with this transaction. they talked about a lot of the methodologies they used to analyze and evaluate tumblr but as you pointed out, we think one of the reasons that some of the financial metrics remember lacking is frankly, they weren't very favorable in terms of people thinking about the transaction. but to some extent, that can be you know, we think back to when google bought youtube or even facebook buying insta gram. i mean, very similar transactions in some respects in that you're paying a billion to $2 billion for a platform and an

asset that's more in growth mode and not in moderation mode on one hand, let tumblr remain independent, let their management team continue doing what they're doing but yet, push them to monetize their substantial user base and content a little bit more proactively. we think that's going to be difficult and we're unclear as to how they're going to do that successfully. dennis: the biggest obstacle would be some times you're buying the talent in the field. this time it's the audience. there's a lot of uproar on tumblr today and they're upset. thank you for being with us today. >> thanks a lot, dennis. cheryl: all right. news alert for you right now. midwest is on high alert bracing for another round of violent weather, at least two people are now confirmed dead.

at least 20 injured. casey is in shawnee, oklahoma not far from oklahoma city. also a town that knows all about the big twisters. casey? >> yeah, cheryl. about 30 miles southeast of oklahoma city, you talk about the two fatalities. we saw tornados yesterday in portions of kansas and iowa and oklahoma but the two fatalities pretty much centered with shawnee, oklahoma right here. in fact, one in this mobile home park where i am. i want to kind of set the scene for you and show you what we're talking about when we deal with these strong and powerful winds that tornados come through. you ee right here this red dirt? this is where a mobile home was sitting. and when the wind blew up this way, it lifted the mobile home up off this red dirt and it flew it right back there on to the grass and you can see it splintered into a million pieces. now, i want to go to some video now that the storm spotters shot of the actual funnel cloud on

the ground here in shawnee because you know, it's interesting. you talk about with this being oklahoma, they know the storms all too well. this state chock full of storm chasers and they bring us powerful pictures when the twisters come down out of the sky and speaking of the sky, look at these aerial pictures. you know, after one of these storms moves through an area, the best way you can really get a sense for the damage is when you see it from up above. and you can see from these images that houses blown apart, cars, vehicles, 18 wheelers tossed around like toys. we don't know the strength of this particular storm yet. it's rated on, the enhanced scale and goes all the way to ef 5. some of the initial reports had said maybe ef 4, maybe ef 3. those are winds of 200 miles per hour so we're going to wait for the national weather service to make that official determination but cheryl, they're bracing, if

you can believe it, for even more tornados later today. cheryl: every year, every year oklahoma goes through this and teches tech as well. you're going to have a busy summer. thank you very much. dennis: and time for "stocks now." take you to the new york stock exchange and keith bliss, keith, dow started down and now back up. kt rally continue through the summer? >> i think so. from what we see in the charts and in the starters, if you will, with this rally, we're going to grind higher. we have a pretty quiet tape today which is not a bad thing to sustain a rally but right now the buttish posture of the is squarely intact. we don't see any trouble unless we break below 16,041 and we can test around 16,000 today. dennis: i thought we were supposed to be afraid the fed was going to pare back the

security purchases and that would go up, et cetera, et cetera. >> we'll see what the chairman says on wednesday and we'll be going through the fomc minutes pretty drastically on wednesday as well. i don't think they're going to pull anything back any time soon. they have the duel mandate of inflation and expectations as well as unemployment. we're not even near the target on the inflation and not even near the target on the unemployment. dennis: thank you for that blissful outlook. good day. cheryl: well, this outlook, maybe that is blissful. there's a gassspike just in time for memorial day weekend. let's go to phil and you know, here's the thing, phil. this is a late start to see gasoline prices spike which is good news but at the same time, you're saying we might have a bigger spike than we really want to see on the consumer level. >> absolutely. you know, it's coming at the worst possible time and a lot of people are crying conspiracy. of course, it isn't that. we've seen a rash of refining issues the last couple of weeks, pipeline issues and believe it

or not, even the tornado you're hearing about in the midwest impacting gasoline prices. we've had power outages at some of the refiners when the refiners have to shut down, that leads to higher gas prices. the good news is that the gas surprises are ample and once we get the issues, you know, straightened out, prices will come back down. the other big news today is gold right now. $40 spike in about two minutes. do i hear capitulation? commodity funds went short but all the big players who got out of tld is buying minor stocks so somebody knows something. back to you. cheryl: you're saying this is it. you called the bottom, phil, on gold. >> i'll tell you, if it smells like the bottom, it looks like the bottom. if you're going to get a bottom, this is how they normally are. everybody is bearish, everybody telling me how bearish it is. gas opened low other a sunday

night and then if we close higher on the day, that looks like the definition of capitulation to me. cheryl: you called it. it sounds like the 1950's all over again. the fight over fluoride is heating up in portland. we have details coming up in the west coast minute.

cheryl: finally time for the west coast minute. state lawmaker in california has a new idea to save the state's % troubled education budget. tax big oil. state senator evans of santa rosa introduced a new bill that would impose a tax on harvesting oil and natural gas in the golden state. opponents say oil companies are already paying monumental fees in taxes in california.

sacramento tops the list of latest consumer distress index cities when credibility added together employment, housing, credit, sacramento got the lowest score at 68. anyplace below 70 indicates distressed household. in portland, a fight over fluoride. the city votes tomorrow whether or not to overturn the counsdocs decision to fluoride the water. it's a divisive issue between liberals and conservatives in the city. organic food companies and environmentalists are waging war. supporters say it will protect the city's kids against tooth decay. that's your west coast minute. dennis: and it's been around for decades. let's fight about it right now. we fight over every basic thing. unable to escape the spotlight, legal battle surrounding steve

cohen. s.a.c. capital appears to be ramping up. cheryl: it's hard to keep a good mountain town. signals telling peter kelly now is still a great time to buy in. dennis: steve forbes and why the i.r.s. scandal is a perfect case for the flat tax. but then steve says that about almost everything.

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promising to "not screw it up". lori: china is at it again. resuming attacks hitting several of the same victims it has gone after in the past. ashley: a growing collection of art and growing homes. charlie gasparino is here. lori: all of that was the markets, of course. back to the new york stock exchange and nicole petallides. nicole: another record-setting day here. we are seeing both the dow and the s&p breaking out to levels we have never seen before. as for the nasdaq, you are also seeing the nasdaq sitting at and even 3500. it, too, hit a multi- year high.